Sensex, Nifty stage smart recovery; PSU, FMCG stocks move up

The market has regained a significant portion of lost ground past mid morning thanks to some strong buying in FMCG, PSU and realty stocks. Select stocks from metal, healthcare and banking sectors too have come off their lows now.

Information technology stocks continue to trade weak. Capital goods, power and oil stocks too are mostly seen struggling to wriggle out of trouble. Bank and automobile stocks are off their lows, but are mostly trading flat.

The Sensex, which had tumbled to 16,742.07 earlier in the day, is currently down 16.59 points or 0.1% at 16,896.12. The Nifty index of the National Stock Exchange is down 8 points or 0.15% at 5106.15, well off the day's low of 5062.75.

In the currency market, the rupee edged higher against the US dollar, extending overnight gains. The partially convertible rupee was quoting at 52.71 per dollar in early trades, up 20 paise against its previous close of 52.91.

SKS Microfinance plunged 20% to Rs 75.85, hitting an all-time low following the company reporting a net loss of Rs 330 crore for the quarter ended March 2012 on account of a Rs272 crore write-off on its Andhra Pradesh loan portfolio. The company had posted a net loss of Rs 70 crore in the previous year quarter.